24 Unit multi-family, huge disparity between Section 8 and going rent..
I'm looking at a 24 Unit being sold by the local Urban Development. The listing states that the rent is 275/unit.... All units are one bedroom which according to HUD Fair Market Rent is 528.00. I haven't talked to anyone that deals with the property yet, just internet searching information, but I am totally confused by this. Gross is listed as 79,200/ net 59,200 (listings numbers, not mine for sure, but still....) Even if landlord paid all utilities the gross should be 152,064 at Section 8.
Asking price 299k/ last sold 2013 for 170k
Any thoughts on what may be going on here? I can't figure out how to accurately do an analysis due to the fact the numbers aren't making sense to me.
Don't destroy me too badly for posting the question without contacting the sellers yet to solve some of the question. I'm actually too confused to attempt talking to anyone who may potentially be involved in this deal to open my mouth.